Have You Heard Home Prices Are Dropping? Not True.

There have been several headlines recently stating that home prices are falling. Well friends, that’s not true.

The fact is, home appreciation is slowing down compared to last year.

Back in January of 2014, home prices were up 13.2% as compared to January 2013. What happened through last year was that the market normalized and price appreciation began to slow. It didn’t enter into red territory. Not once did we experience depreciation. The amount home prices were going up simply slowed down. The acceleration of appreciation slowed.

So those national headlines out there claiming prices are falling, that’s just not true. The amount of appreciation is dropping. There’s a big difference between those two statements.

Industry experts forecast that this year, 2015, prices are going to go up about 4%. In 2016 we’ll be going back to a more normal appreciation of 3% - 3.5%.

If we look back historically at annual appreciation in this country, we’re in a good place as far as home prices are concerned. The market has begun to normalize.

Have questions about our local real estate market? Call the experts, The Kombrink Lobrillo Team at RE/MAX Great American North, at (630) 488-3300.